GE to buy Italian Avio unit for $4.3bn

Milan, December 22, 2012

US conglomerate General Electric has agreed to buy the aviation business of Italy's Avio for $4.3 billion, in a sign of confidence about the country's underlying strength despite its deep recession.

The deal comes as Europe's fourth-biggest economy labours to become more competitive under a reform agenda set by technocrat Prime Minister Mario Monti, who stepped down yesterday before general elections seen in February.

"We are convinced that Italy will exit the crisis," Nani Beccalli, president and chief executive of GE Europe, said yesterday.

"There are undoubtedly hurdles linked to red tape. But the strategic value of the deal is so big (it would offset other issues)," Beccalli said.